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Thread: Mayne Demerger

  1. #1
    Pigs In Space GreatPig's Avatar
    Join Date
    Jul 2004

    Default Mayne Demerger

    Anyone understand how the shares work in this demerger?

    Mayne has split into Mayne Pharma and Symbion. Mayne shares closed at $5.93 on Friday, and today Symbion opened at $3.80 but closed at $3.16. Pharma closed today at $2.85, but I gather won't be trading normally until early next month.

    So far my portfolio on HSBC Stockbroking only shows Symbion shares, no Pharma shares, which means it's showing an awfully big down day (46.7%). Am I correct in assuming that I should also be getting some Pharma shares, so that the total value would be about the same as Mayne before?

    An earlier article in the SMH said:

    In the demerger Mayne shareholders receive one Mayne Pharma share for each Mayne share they hold. But under the capital reduction, the share capital of Mayne will be reduced by $2.49 for each Mayne share and the funds will be used to create the separate Mayne Pharma entity.
    This implies I should also be getting one Pharma share for each Mayne share, in which case my $5.93 Mayne share would now be a $3.16 Symbion share plus a $2.85 Pharma share - $6.01 worth in total.

    That certainly sounds better than a 46.7% down day

    So is that how it works?


  2. #2

    Default Re: Mayne Demerger

    you have got it right piggy wiggy - sit back and relax and MYP will show up soon. what a turnaround they have been since their dark days of $2.70 odd.

  3. #3

    Default Re: Mayne Demerger

    Thanks, SoBL.

    SYB is looking pretty good today too, up nearly 9% right now - although MYP is down a fraction.

    I only bought Mayne at the start of this month, based on its small rounding bottom pattern. Good to see one doing what it's supposed to!


  4. #4

    Default Re: Mayne Demerger

    you'd swear from the action last 2 days that someone , or just hopefuls, are building a stake in the pharma-less portion of MAY in anticipation of a bid...ie. SYB.
    from memory pharma did say they dont expect any real action on their side til 07-08, hence their inactivity. although from that 'true value' of $2.49, they are doing ok too.

    i 1st got in during the heady days of smedley, and topped up several times during the dark days to average down to the low $3's.

    glad to see them finally coming of age, although they may get bought out very soon, meaning im back to searching again.....but their are good things coming, arent there fleeta !!!

  5. #5

    Default Re: Mayne Demerger

    Hmm... MYP has triggered an exit in my system yet is still not showing in my holdings on HSBC Stockbroking.

    Is it really being traded, or is it just moving counter to SYB to keep some combined value? The moves in MYP this week look pretty much like a mirror image of SYB - not exactly, and not with the same percentage moves, but very similar.

    If it is really being traded, it's a bit rough that it's not showing in my holdings for me to sell if I want to.


  6. #6

    Default Re: Mayne Demerger

    Okay, I rang HSBC Stockbroking - mainly about another issue of some funds not showing up - but also asked about MYP not showing up in my holdings. The guy acknowledged that MYP did indeed seem to be trading, but reckoned it was the registries that were delaying it appearing in my holdings. My holdings do show another entry for SYBXE with $0 value and the same number of shares as SYB, which he reckoned is probably the rights or whatever that will soon become MYP.

    So lets just hope that MYP doesn't fall too much further before it shows up!

    For the benefit of other users of HSBC Stockbroking, apparently they've had some banking problems with overnight funds transfers not going through, so you may not see amounts turning up this morning that you might have been expecting. The guy reckoned it should all be cleared up later this morning.

    What triggered my call was a share sale on Monday where the proceeds of the sale still haven't become available for trading. My available funds for trading is currently on a couple of hundred dollars, while the funding account has a few 10s of thousands showing in it.

    A little frustrating in that the two shares I intended to buy with the proceeds on Monday went up about 8% and 18% yesterday, plus a significant gain on Monday after I would have bought them

    As if it's not tough enough making money as it is...


  7. #7

    Default Re: Mayne Demerger

    Now I'm even more confused

    Finally the MYP shares showed up in my portfolio on HSBC Stockbroking.

    Originally I bought 5000 MAY at $5.28 and until MYP showed up, my portfolio was just showing 5000 SYB, currently at about $3.60 (plus some SYBXE thing worth $0, whatever that is).

    When MYP appeared, the portfolio listed 10,000 shares, currently at about $2.57.

    Now that doesn't make sense to me. All the documentation I've seen, including one from the ATO about the demerger, indicated one MAY share would become one SYB and one MYP. With 10,000 MYP shares, the value of those alone are about the same as the original MAY shares.

    So either I've gotten a bonus 5000 MYP shares for nothing, or there's been a mistake. And as I just sold them today, it means I'm either sitting pretty or am now short 5000 MYP shares when they notice the mistake and fix it

    Oh well... just wait and see what happens I guess.


  8. #8

    Default Re: Mayne Demerger

    Didn't have to wait long...

    Just got a phone call from HSBC: we accidentally allocated you 10,000 shares when you were only entitled to 5,000.

    So they're amending the sell order.


  9. #9

    Default Re: Mayne Demerger

    just noted the combined value of MYP & SYB hit $6.40 - very nice turnaround.

  10. #10

    Default Re: Mayne Demerger

    After the split, I adjusted my figures for a 50:50 Mayne/Symbion arrangement.

    Now I get a letter in the post saying the cost base adjustment is something like 55.xx% and 44.xx%.

    Gotta figure out how to adjust my figures now. Obviously these companies are run by accountants looking after their mates in private practice


  11. #11

    Default Re: Mayne Demerger

    nice end result for long suffering MAY holders - now to get the other half offloaded

  12. #12

    Default Re: Mayne Demerger

    I will drink to that! I have held since 2000. Sold Myp at the split and kept Syb, on retrospect I should have done the reverse. Had a chance to sell Syb a while back when they spiked briefly to $3.70 Lets hope they do it again.

  13. #13

    Default Re: Mayne Demerger

    Forget about that Pry offer rejected back down we go!

  14. #14
    3 veiws of a secret
    Join Date
    Feb 2006

    Default Re: Mayne Demerger

    Well this is the closest thing to the MYP thread I can find! -So induce me with any happy drug and fit me into a striaght jacket -the pain and suffering has paid off with my MYP shares -it's takeover time. RHC here I cometh!

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